Dogecoin Whales Accumulate $100M: Potential Impact on Price

A noteworthy accumulation of Dogecoin (DOGE) whales, holding between 100 million to 1 billion coins, has been observed since May 28th. Data from Santiment indicates that these whales collectively purchased over $100 million worth of DOGE.

As a result of this accumulation, the supply held by this group increased from 20.69% to 21.40%. The surge in buying activity suggests potential positive implications for DOGE's price.

The accumulation by DOGE whales, amounting to over $100 million, signals a growing demand for the cryptocurrency, potentially influencing a price uptick. Currently, DOGE is trading at $0.15, displaying sideways movement in the past week.

The increase in whale accumulation implies a potential shift in DOGE's trajectory. If this trend persists, the cryptocurrency may experience a breakout, aiming to surpass $0.20 as seen in March.

However, for this optimistic scenario to unfold, DOGE would require confirmation from other metrics. The successful alignment of these metrics could drive the price upwards. Conversely, a failure to validate these metrics might result in DOGE dropping to approximately $0.12.

An escalation in Mean Coin Age often signifies the movement of older coins among wallets, indicating distribution and potentially leading to lower prices.

From early April to May 29th, the 90-day Mean Coin Age exhibited an increasing trend, showcasing sell-offs by long-term holders that maintained DOGE's trading range between $0.13 and $0.16.

Yet, in the recent days, the Mean Coin Age has been decreasing, currently standing at 49.08. This decline suggests that more holders are choosing self-custody over exchanges.

If this trend extends over the upcoming weeks, it may trigger a parabolic surge favoring bullish sentiment for DOGE. Additionally, on-chain data reveals a reduction in the circulating supply of Dogecoins, with a one-day circulation of 357.04 million coins, indicating diminished selling pressure.

While reduced selling pressure does not guarantee a breakout, the collective signals from various metrics hint at a potential rally on the horizon.

At present, 83% of Dogecoin holders are in a profitable position, as per IntoTheBlock. This percentage could further increase once DOGE initiates an upward trajectory, potentially reaching 90% in case of a breakout.